Nigeria FinTech Landscape - Impact Assessment
Despite the progress made in the Nigerian FinTech ecosystem, there are still gaps
that stakeholders need to make concerted efforts to address (1/9)
1 Regulator
- Policies
Progress
Shift to electronic payments
through e.g. cashless policy has
enabled the growth in areas
like online payments as
merchants shift to electronic
channels
-
■ Licensing of Payment Service.
Providers (PSPs) to operate
properly under regulatory
guidelines PSP licensing
enabled many players with
limited capital to enter the
payment processing space
■ National Financial Inclusion
Strategy (NFIS) has led to the
push and growth in agency
banking
Current gaps
Frequent policy changes
/misalignment
Frequent change in policies &
guidelines by regulators
&
Limited synergies between policies.
e.g. cashless policy vs additional
levies on electronic payments
Delayed implementation of
proposed guidelines e.g. proposed
tiered PSP licensing is still a circular
Constraining licensing & regulatory
regime
■ A number of restrictive policies e.g.
cap on agent banking pricing,
limits on USSD transactions
Multiple and sometimes expensive
licensing required to carry out
several activities e.g. PTSPS
■ No process/framework in place to
update outdated regulations
Opportunities
=0
CBN to ensure implementation of regulatory
sandbox that allows FinTech to develop and test
solutions within an enabling environment and
support scale through these components:
Setting out specific sandbox criteria
Using a cohort based model for companies
to test
■ Relaxation of specific regulatory requirements
■ Tailored authorization process of companies
that wish to test innovations
◉
Guidance/Case officer for FinTech to support
design & implementation of test
Extended sandbox services to other areas
such as Insurance
■ Monitor and update regulations that foster
competition, innovation and protection based
on sandbox outcomes
SOURCE: Expert Interviews, Press Search
EFINA
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